Question

Identify and explain the primary objective of for-profit businesses. (5 marks)

Answer 1

A buisness refers to Selling goods and sevices to the customers in order to earn Profit. For Profit Business the main objective is to earn financial gains. It is the utmost important to earn profit for them as it can be consider blood of the business. It is Done by selling products and services more than cost price.

The Main Objectives for profit organisations are:

1. Fulfilling Customer Needs: It is important for business to satisfy customer needs in order to remain in the the business and achieving constistent growth, it can be done by manufacturing products that is needed by the customers.

2. Creativity and Dynamic: The business must have to adapt creative ideas in order to survive it can be anything that creates value addition in the products and company profits like adaption of cutting edge technology, diversification.

3. Social Factors: Every Business operates in the social environment and uses natural resources in order to manufacture goods and it is their responsibility to use optimum utilisation of resources.

4. Human development: Business require human capital which helps them in taking key decisions. So, the company should give enough opportunities to them to harness their skillsket and contribute to the best of ability.